Renting now a whole lot cheaper

Download the latest CoreLogic August Rent Review.

Excluding Melbourne, Darwin and Canberra, rental rates across Australia’s combined capital cities continued to drop in August according to the latest CoreLogic Rent Review. Interestingly, the August results mirrored the results for July, with both months now sharing a -0.3% drop.

According to research analyst Cameron Kusher, weaker rental market conditions are expected to continue over the coming months as overall housing supply grows. Combined capital city median weekly rents are sitting at $481 per week; the lowest rate since November 2014.

Rental Index results as at August 31, 2016

2016-09-09--rental_review

According to Mr Kusher, over the past year rental rates have fallen by -0.5% and are now -1.4% lower than when they peaked back in May 2015. In contrast, we saw capital city rental rates increase by 0.7% at this time last year.

“As long as wages growth continues to stagnate, coupled with historically high levels of new dwelling construction and slowing population growth, landlords won’t have much scope to increase rents. On the flipside, renters are now in a much better position to negotiate,” Mr Kusher said.

Changing rental market conditions may also spur on repercussions for older stock, particularly units. With new unit supply being built, much of which is located in inner city locations. According to Cameron Kusher, there is the potential for a flight of tenant demand towards higher quality tenancy options in newer buildings. “It may be more difficult for owners of older units with fewer amenities to compete with better located and facilitated new unit stock, particularly if there is little pricing differential,” he said.

Over the past 12 months, rental rates have increased in Melbourne (+2.9%), Hobart (+6.8%) and Canberra (+2.6%). Rental rates are unchanged over the year in Sydney and have fallen in Brisbane (-1.1%), Adelaide (-0.3%), Perth (-9.4%) and Darwin (-14.1%). Melbourne, Hobart and Canberra have each recorded stronger rental growth over the past year compared to the previous year.

August Rent Review Snapshot:

  • Weekly rents across the combined capital cities fell by -0.3% in August 2016 and are now -0.5% lower over the past year;
  • Melbourne (2.4%), Hobart (6.8%) and Canberra (2.6%) are the only cities in which rental rates have increased over the past year while Sydney rents are unchanged;
  • Large rental falls in Perth (-9.4%) and Darwin (-14.1%) have pulled the combined capital average lower, with rents also falling in Brisbane (-1.1%) and Adelaide (-0.3%) over the year;
  • Currently, combined capital city rental rates are $484/week for houses and $466/week for units.


Ends 


Report attached. Please contact - media@corelogic.com.au for additional information or call Mitchy Koper, or Peta Crowe on 1300 472 767


About CoreLogic

CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 4.4 billion decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.

With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.

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